UAE’s SMEs, Start-Ups Could See $17.1 Billion Boost from Hyperscale Cloud Computing: Report

Jerusalem, 24 November, 2022 (TPS) -- DUBAI, 23rd November 2022 (WAM)
Hyperscale cloud computing is expected to provide SMEs and start-ups in the UAE with US$17.1 billion (AED62.6 billion) worth of economic benefits from 2022 and 2030 — the equivalent of four percent of the country’s 2021 gross domestic product (GDP) — says a new report commissioned by Amazon Web Services (AWS) in partnership with Dubai Chamber of Digital Economy.

The report, titled Impact of Hyperscale Cloud on UAE SMEs and Start-ups, was launched during an event organized by the Dubai Chamber of Digital Economy at Dubai Chambers’ headquarters in cooperation with AWS.

Khalid Al-Jarwan, Executive Director of Dubai Chamber of Digital Economy, and Yasser Hassan, Managing Director for MENA and Turkey, Amazon Web Services (AWS), and business community members attended the event.

Access Partnership, which conducted the research for the report, featured an informative presentation covering the key findings, followed by a panel discussion with industry experts who discussed new business opportunities emerging with the growing adoption of cloud computing worldwide.

The report revealed that 74 percent of SMEs and start-ups in the UAE still use manual processes and basic communication tools, highlighting the vast potential for these companies to benefit from cloud computing advantages.

Between 2022 and 2030, SMEs and start-ups can generate US $10.1 billion (AED37 billion) in user benefits and US $7billion (AED25.7 billion) in partner benefits from hyper scale cloud computing, supported by a hyper-scale regional data center in the UAE.

The report estimates that by 2030, hyper-scale cloud computing is expected to create 133,000 direct and indirect jobs in the UAE, and reduce the country’s carbon footprint and carbon dioxide emissions by up to 78 percent and 2.2 million metric tons in comparison to other IT infrastructure models, in addition to reducing security incidents by more than 30 percent.

The report outlined three key recommendations to capitalize on this potential. Government organizations should first lead the way in digital transformation and technology adoption while harmonizing and simplifying digital and data regulations and implementing a risk-based data classification system to improve data security and facilitate technology adoption.

Secondly, government entities can collaborate with the private sector and technology companies to bridge the digital skill gap through training and upskilling programs. Finally, there is potential to increase collaboration between regulators and private companies to ensure regulations do not halt technology adoption.

Khalid Al-Jarwan, Executive Director of the Dubai Chamber of Digital Economy, said, “Despite its rapid progress, the UAE continues to look to the future as it pushes ahead with strategies and initiatives to fast track its digital transformation. Hyper scale cloud computing offers tremendous potential for start-ups and SMEs in the UAE that are keen to enhance their competitiveness and contribute to a thriving innovation ecosystem.”

Al Jarwan stressed the importance of conducting market research that offers transparency on emerging economic sectors and identifying market challenges and opportunities. The new report, he noted, outlines recommendations to maximize the potential benefits of hyper scale cloud in the UAE, adding that such studies reflect the close and seamless cooperation between public and private sectors in Dubai.

Yasser Hassan, Managing Director/General Manager for MENA and Turkey, of AWS, said, “The report findings are a further testament to the value creation potential that the cloud has to offer to SMEs, entrepreneurs and start-ups. By leveraging the power of the cloud, UAE businesses can accelerate innovation and digital transformation agility to build business resilience in a competitive and dynamic marketplace.

The report identified the advantages of hyper-scale cloud computing as scalable cloud storage, services on a pay-as-you-go basis, innovative capabilities, increased security, simplified global operational processes, and the expertise to navigate operational and regulatory issues when expanding overseas. These advantages add to increased productivity, cost savings, revenue boosts, job creation, improved sustainability and operational resilience.

Additionally, adopting a hyper-scale data center would enable UAE technology partners to be part of a global partner network and generate more revenue by serving customers worldwide.